In a ringing endorsement of India’s economic trajectory and its G20 presidency, the International Monetary Fund (IMF) managing director, Kristalina Georgieva, has said that India deserved to be called a “bright spot” both because of its growth trajectory in difficult times but also because this growth was underpinned by structural reforms, particularly digitalisation.
The IMF MD also said that India was taking over the G20 from this position of strength and it could leave a mark on the world “for years to come”. Identifying digitalization, digital money, cross border payments, renewable energy and making international institutions fairer as areas where India can make a mark, she expressed the confidence that next year will make all Indians proud.
Speaking at a press conference during the annual meetings of the Fund and the World Bank on Thursday, when asked about India’s trajectory, Georgieva said, “India deserves to be called a bright spot in this otherwise darker horizon because it has been a fast growing economy even during these difficult times.”
She added, “But most importantly, this growth is underpinned by structural reforms, among them the remarkable success in digitalization in India — from digital ID to providing all services and support on the basis of digital access.” This, she said, had been a huge factor in India’s success.
While IMF cut India’s growth prospects to 6.8% in its latest world economic outlook, down from 7.4% in its July outlook, India stands out at a time when global growth is projected to slow down from 6% in 2021 to 3.2% in 2022.
{{/usCountry}}While IMF cut India’s growth prospects to 6.8% in its latest world economic outlook, down from 7.4% in its July outlook, India stands out at a time when global growth is projected to slow down from 6% in 2021 to 3.2% in 2022.
{{/usCountry}}Georgieva said that India was taking over as G20 president from this “position of strength”. “This makes me strongly believe we would see India leaving a mark on the world for years to come during next year’s presidency.”
The IMF MD then asked, “What could that mark be?” And answering the question, she elaborated, “It could be in the area of digitalization, including digital money. We know we need regulation of crypto. We need to get some more attention to cross border payments. We are proposing public investment in a cross border payment platform.
She listed out “bringing more fairness in our institutions” as another area where India can leave a mark. “Next year, we need to complete the 16th quarter review. India has been a very strong voice for the Fund to be financially strong and also to be a strong institution on the basis of fair representation of our members.”
The IMF MD also flagged the issue of renewable energy; and suggested many were not aware of India’s achievements in that regard. “It could be in the area of renewable energy. India has leapfrogged in solar and other forms of renewable energy.”
She said that she was very much looking forward to next year. “I am sure it would make the people of India, nearly 1.4 billion of them, very proud.”
Georgieva’s comments on India were a stark contrast to the Fund’s bleak assessment of global economy. During her remarks at the press conference, the IMF MD asked whether the world was witnessing a fundamental shift in the economic order towards more uncertainty and volatility. Laying out a policy agenda, Georgieva also asked policymakers to focus on bringing down inflation, put in a place responsible fiscal policy, safeguard financial stability, and support emerging markets and vulnerable countries.